Forex trading is a very risky business, if you do not know what you are doing, some people just trade based on signs from their friends , Why not know How to generate these signals yourself? You can first practice with a combination of three or more indicators, now I will explain how to use some of them. First, the ADMI, this simply means medium-directional movement index, this is a technical tool that can be used to read the market for a currency pair in forex trading. The ADMI consists of three different tools: DI +, DI and trend line, the trend line can be seen when you click the third of the last icon at the top of your Meta 4 platform and open the ADMI and then click Parameters, Adjust it from a scale of 0 to 100. DI- and DI + can be seen from clicking on colors in the ADMI software. You can change the colors for each one to your desired colors.
The trend line is used to determine the strength of the market, if the trend line is below 20, then this means that the market is slow, the market being slow can adversely affect its trade most Times because it will take longer for the market to follow a signal but if it is between 20 and 40 then it is Ok but over 45 is bad unless you take your trade to the end of a stick if it has gone Against the signal and the signal is still right. Usually it is advisable to use a 1 hour chart, so after 45 minutes on a stick stick formulation, and the trend line is high, also the market has gone against its signal, there is a greater tendency for it to redo.
The DI + (positive line) and DI- (negative line) are used to read the market or determine its signal, whenever the positive line cuts the negative line from below, a strong buying signal has been established And when the negative Line cuts the positive line from below then a strong selling signal has been established. Also, when the positive live rises, this means that the market is buying or there is an upward trend and also when the negative line points up there is a downward trend if you are using a one hour chart, make sure you study And enter all of your business within a maximum of 40 minutes for the wording of a new stick stick.
With the above you can study the market well, but to make sure you can add other indicators like RSI, Stochastic, Zigzag and others, Practice with them first so you can understand how they work. Now the best time to go with a signal generated from a technical indicator is in the morning before 9am London time and the evening after London time 8am during this period there will be no news that Will affect the trend negatively
Source by Osakue Aimufua